Share buyback and share transfer for Supplier Share Schemes

Further to the NZX announcement made to the market on 25 February 2015, Comvita entered into a share scheme with its loyal beekeeper honey suppliers. The scheme was successful, so much so that a second scheme was established last year on similar terms as the original scheme. The original scheme set up in 2015 has now come to an end. During the course of the scheme, in light of the weaker honey harvests experienced by many beekeepers over the past 3 years, certain volume targets were not met by some participants, resulting in a number of share entitlements being forfeited under the rules of the scheme. With the original scheme now at an end, Comvita has today purchased back the shares that were forfeited under this scheme, as announced to the market on 6 December 2019. No cash is required for this buy back. The 131,341 shares have transferred back to treasury stock, see attached 3.13.1 notice. In accordance with the 'rules' of the second scheme, today Comvita has transferred 133,979 shares from Comvita Treasury Stock to the Trustee of the scheme at a value of $2.97 per share, see attached 3.13.1 notice. The scheme has 31 beekeeper members and runs for three consecutive years, ending 31 December 2021. The shares transferred into escrow today will be released from the Trustee to the beekeeper members upon fulfilment of their contracted supply obligations for the year ended 31 December 2019. The supplier share scheme progressively rewards those beekeepers who identified the value in establishing a long-term supply partnership with Comvita, in the form of shares. These honey suppliers are able to participate in the 'value add' that Comvita can bring to raw honey and the resulting profitability of Comvita through dividend flow and capital appreciation of Comvita shares. The success of the first Scheme and now this second Scheme has demonstrated that a growing number of New Zealand beekeepers are seeking longer term surety on price and customer demand when selling their crop. They see the benefits to themselves, the industry and customers when supply commitments are formalised under long term contracts. The Scheme provides a strong foundation for the supply model and collaborative approach that Comvita will continue to operate into the future. Ends For further information: Brett Hewlett, Comvita Executive Director, 021 740 160 Neil Craig, Comvita Chairman, 021 731 509 Background information About Comvita (www.comvita.co.nz) Comvita (NZX:CVT) is a global natural health company committed to the development of innovative products, backed by ongoing investment in scientific research. End CA:00346332 For:CVT Type:SECISSUE Time:2019-12-19 16:04:55